In January 1995, Randall, then 57, sold his principal residence in Seattle and took advantage of the once-in-a-lifetime exclusion available to homeowners under the Internal Revenue Code. In 1995, the maximum exclusion was $125,000. He excluded his entire gain on the sale, which was $100,000. Later that year, he purchased a new residence in Denver that he used as his principal residence. Early in the current year, he sold the Denver residence for a realized gain of $300,000. Randall is a single taxpayer. What is the maximum amount of gain, if any, that Randall may exclude under Section 121?

A)

$25,000

B)

$0

C)

$250,000

D)

$150,000